News

From under the radar 19 Aug 2009

First published in Post Magazine 04 Aug 2009

Last year, Andreas Loucaides left the Lloyd's behemoth Catlin, where he was chief executive of its UK insurance company arm, and set up his stall at the personal lines and motor specialist Jubilee.

As its first underwriting director he immediately talked up the opportunities for the managing agency to diversify" a plan that was seen through with the acquisition of a six-strong global property team led by Martin Pope, formerly of Travelers, to underwrite business from the beginning of this year through Syndicate 5820.

Mr Loucaides has now taken on the mantle of chief executive, something he insists was not part of any major masterplan when he joined" although he hints it was mentioned in the discussions he had with his predecessor Theodore Agnew and the board.

Now, with Mr Agnew as deputy chairman and a non executive director, and Norman Topche" who joined at the same time" as his successor in the underwriting role, Mr Loucaides is candid about his intentions for the business, which include stretching the brand into additional new areas. He does, however, admit Jubilee could be a harder sell than some.

"If I was a team out there I'd be asking a lot more questions than if I was joining an Amlin, where you know it is a large stable firm that is a powerful force in the market," he comments.

"Jubilee is below the radar; it is a small agency, but that is what we like about it. And that holds an attraction for some of the groups in the Lloyd's environment that may be looking for a new challenge."

Jubilee was very much a personal lines specialist when Mr Loucaides joined, with three syndicates, one specialising in motor" 1231; other general insurance lines" the 5820 Cassidy Davis business acquired from Travelers; and life products" 779, bought at the same time as the 5820 business.

Settling in

He explains that he was brought in to oversee and bed in the property team, a diversification he admits was pretty extreme.

"Suddenly we were looking at things like cat exposure, new underwriting and aggregate controls, RMS modelling and making sure we had systems in place and that they were working. If an earthquake suddenly occurs within the first few months and you don't know your exposure, you're in trouble."

Mr Topche was originally brought in as director of reinsurance" another new role" which Mr Loucaides explains: "Historically, the business did not buy much reinsurance but then all of a sudden it had to put a complex programme together to ensure it covered all the issues a property account would have, especially one that covers international and the US."

As to how successful the property team has been, Mr Loucaides predicted last year that it would be underwriting £33m of business in 2009. But given factors such as the exchange rate, an unexpected rise in rates by as much as 10% to 15%, and the fact the team has seen 90%" rather than the anticipated 50% to 60%" of renewals, he now says this figure could end up in the region of £60m.

"We have been very fortunate and sometimes luck does play a part," he acknowledges. As to prospective new lines Jubilee may consider, Mr Loucaides says: "We are looking at opportunities that have been presented to us and asking whether they are viable and have a good track record. We also have to try and predict a little bit about what is going to happen because, invariably if you decide to do something, it will be months down the line before it comes on stream. For example, we first started the property discussions last May and the team joined at the beginning of the year."

Mr Loucaides concedes that if another small block of business, like Cassidy Davis, was to become available he would feel comfortable looking at it" but stresses that in today's environment Jubilee is keener to look at teams who may have become dissatisfied.

"I hope we demonstrated with the property team that we can deliver a platform and make it work so that other people may consider us," he adds. "We are looking at the UK and European commercial property and speciality lines. But there is lot of pressure on them and a lot of competition, so the challenge is to identify a small niche team that can demonstrate a good track record through the cycle and fit into the structure here."

In his past two roles as co-founder and CEO of PRI and then CEO of Catlin, Mr Loucaides oversaw a UK listing and the insurance company arm of a listed Lloyd's vehicle respectively.

Asked whether Jubilee could ever be in a position to float, he retorts: "You can't say no; it is possible. Nothing is out of the window because the plan at the moment is a very simple one: establish a good, stable environment. But Guardian Holdings, who is the largest shareholder, is keen to be part of the London market and support it going forward."

Mr Loucaides says that Jubilee expects to underwrite £150m of business next year, adding: "If we grow that to £250m or £300m in the next two to three years we will be over the moon, but it will only be done if the business is profitable."

This begs the question of whether, as it grows, Jubilee could follow Catlin and launch a UK insurance company platform.

"There are 101 opportunities when you get to a certain size," he explains. "You could set up an insurance company, you could do an Alternative Investment Market flotation, you could get other people to buy into it. But the key thing at the moment is alignment and ensuring the platform is stable so that we are able to take on opportunities to get to a 'smallish' size within the Lloyd's structure."

Brand awareness

But for a 'smallish' agency to have three syndicates could be seen as inefficient, couldn't it, and two brands potentially confusing? Does Mr Loucaides have any plans to streamline these?

"We can't do anything about the life syndicate, it comes under different rules. But, even before I arrived, it was discussed whether Jubilee should merge the two general insurance syndicates and we talked about it again this year. So, it is something on the cards that we are actively looking at for next year."

As to the future of the Cassidy Davis brand, he adds: "By bringing the syndicates together you could have a single branding, and a single focus so people did not have to go and talk about Jubilee motor and Cassidy Davis personal lines for half an hour each.

"All will be revealed at some stage; we are doing a lot of work at the moment and it makes sense for us to consider what Jubilee is going to look like in 2010. The questions include whether we should have one brand and whether we should join the syndicates together. These are all in the melting point at the moment."

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